Comment on Stop Loss orders - Limit/Market

Nithin Kamath commented on 23 Jun 2016, 08:39 AM

1. yes
2. yes
3. yes

If you want guaranteed execution of stoploss, but still don’t want the risk of SL-M market order executing at a price much away from the current price, I’d suggest you to use the normal SL order itself with limit price at a price where you are comfortable as an impact cost. Assume you have bought a stock at 105, you want a guaranteed stoploss if market breaks 100, but this is an illiquid contract and you don’t want your order to move the price down by too much. You can use SL order with trigger price at 100 and limit price as 99. What this will do is that it will ensure that your order doesn’t push the price below 99, important when trading illiquid scrips.

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